Nothing black or white here. Shades of gray. Should Nico have backed out and left more room? Sure. Hamilton certainly knew Nico was there, no doubt. Should Hamilton have given more room? Sure. Sometimes it doesn't matter what the rules say. If you take yourself out of the race, rules won't help much to make it right.

^ This, and pretty much everything else you said, Mark.

I'm not a fan of either, but I think Nico had shades of Bahrain's last laps battle running in his head, where there was at least one time that Lewis counted on Nico to simply disappear so that they don't crash each other out.
Nico yielded and lost the race win there, and Lewis won the psych battle as well.
Spa was where you saw Nico saying "no more" to Lewis and regain his position in the psych battle.

Spa was where you saw Nico saying "no more" to Lewis and regain his position in the psych battle.

you say this now. but contact is a 50/50 (okay more like 70/30 in Nico's favor, as his position is more advantageous, he probably would of spun Lewis even he bumps Lewis a little harder). if Rosberg came out in losing end in this contact. Lewis would of won the psych battle.

"20.3 More than one change of direction to defend a position is not permitted. Any driver moving back towards the racing line, having earlier defended his position off-line, should leave at least one car width between his own car and the edge of the track on the approach to the corner.
20.4 Any driver defending his position on a straight, and before any braking area, may use the full width of the track during his first move, provided no significant portion of the car attempting to pass is alongside his. Whilst defending in this way the driver may not leave the track without justifiable reason.
For the avoidance of doubt, if any part of the front wing of the car attempting to pass is alongside the rear wheel of the car in front this will be deemed to be a 'significant portion'."
This is why the stewards also saw it as a racing incident and it wasn't investigated. I still think Nico was a little too aggressive (definitely not on purpose). But like stated before, he was proving that he can't be pushed around.